You’ve purchased income property and are getting ready to rent it out. Creating a solidly worded lease now becomes a priority. A lease details owner and renter obligations, specifically with regard to fees, upkeep, and property damage. There are several key elements you must include in the lease documentation.

1. The property address
2. The tenant’s name and license number or some other means of traceable identification
3. Monthly rental cost and due dates (with or without utilities) along with any required security deposits and late or bounced check fees
4. How rent will be paid (picked up, mailed, mailing address)
5. Rental stipulations including whether pets are permitted, how many people can live in the house and penalties for breaking stipulations.
6. Trouble reporting: how the tenant should report issues with the property along with several alternative contact numbers / addresses.
7. Subletting: can the renter sublet, and if so under what conditions?
8. Termination clause: how can the tenant or owner terminate the lease?
 

If you don’t feel comfortable in creating your own leases there are several places online that have free legal documents that you can download and personalize. Or, if you have an attorney that person can create a standardize lease for you to use on any income property.